Iran declares full Hormuz closure again after renewed U.S. strikes on key sites

Iran’s military issued the order early Thursday after the U.S. carried out fresh air strikes on what it described as key facilities inside the country. Washington framed the strikes as retaliation for recent Iranian attacks, including the downing of a U.S. Apache helicopter over the strait days earlier.

Roughly a third of globally traded fertilizer, including ammonia, sulfur and urea cargoes bound for buyers in Asia, Africa and the Americas, normally moves through the strait. A sustained closure would force longer rerouting via the Cape of Good Hope, adding weeks to delivery times and pushing up freight costs.

U.S. Central Command disabled the Palau-flagged tanker after it attempted to pass through the strait, an action that killed three Indian crew members. The vessel was one of eight ships U.S. forces have disabled since a partial blockade began in mid-April.

Since mid-April, U.S. forces have disabled eight vessels and redirected 134 others attempting passage while allowing 42 ships carrying humanitarian cargo through. Iran’s latest order threatens to fire on any vessel that tries to cross, regardless of cargo.

Brent crude ticked up to $93.18 a barrel following the closure announcement, a modest move reflecting uncertainty over whether the blockade will hold given the partial enforcement seen since April. Fertilizer buyers are watching freight rates and insurance costs for early signs of disruption.